Inergy Acquires Country Gas, Inc. of Alabama; Continues Expansion of Retail Propane Operations

Business Wire, Sept 5, 2006

KANSAS CITY, Mo. -- Inergy, L.P. (Nasdaq:NRGY) announced that it has acquired the assets of Country Gas, Inc., headquartered in Sumiton, Alabama. Country Gas, founded in 1969, is the 33rd largest retail propane marketer in the United States as ranked by LP Gas Magazine. The Country Gas operations deliver retail propane to approximately 21,000 customers from 11 retail locations in the northern region of Alabama, and the assets will be operated under the existing trade name.

In addition to the acquisition of Country Gas, Inergy also announced the recent acquisitions of Firelands Energy Service located in Ohio and Deyo Fuels located in New York. These transactions represent Inergy's 56th, 57th, and 58th acquisitions since its founding in 1996; and all of the transactions are expected to be immediately accretive to unitholders on a distributable cash flow per unit basis.

"The acquisitions of Country Gas, Firelands, and Deyo Fuel continue the expansion of our retail propane business in attractive market areas," said John Sherman, President and CEO of Inergy. "We are pleased to welcome the employees of these outstanding companies to the Inergy team as we continue to grow cash earnings on behalf of our unitholders."

About Inergy, L.P. and Inergy Holdings, L.P.

Inergy, L.P., with headquarters in Kansas City, Mo., is among the fastest growing master limited partnerships in the country. The company's operations include the retail marketing, sale and distribution of propane to residential, commercial, industrial and agricultural customers. Today, Inergy serves approximately 700,000 retail customers from over 300 customer service centers throughout the eastern half of the United States. The company also operates a natural gas storage business and a supply logistics, transportation and wholesale marketing business that serves independent dealers and multi-state marketers in the United States and Canada.

Inergy Holdings, L.P.'s assets consist of its ownership interest in Inergy, L.P., including limited partnership interests, ownership of the general partners, and the incentive distribution rights.

This news release contains forward-looking statements, which are statements that are not historical in nature such as the expectation that the acquisitions will be immediately accretive on a distributable cash flow per unit basis. Forward-looking statements are subject to certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or any underlying assumption proves incorrect, actual results may vary materially from those anticipated, estimated or projected. Among the key factors that could cause actual results to differ materially from those referred to in the forward-looking statements are: weather conditions that vary significantly from historically normal conditions, the general level of petroleum product demand and the availability of propane supplies, the price of propane to the consumer compared to the price of alternative and competing fuels, our ability to generate available cash for distribution to unitholders, and the costs and effects of legal and administrative proceedings against us or which may be brought against us. These and other risks and assumptions are described in Inergy's annual report on Form 10-K and other reports that are available from the United States Securities and Exchange Commission.

Corporate news, unit prices and additional information about Inergy, including reports from the United States Securities and Exchange Commission, are available on the company's website, www.inergypropane.com. For more information, contact Mike Campbell in Inergy's Investor Relations Department at 816-842-8181 or via e-mail at investorrelations@inergyservices.com.